What Financial Services Can Learn from the Skilled Trades Workforce
As a recruiter in the financial services industry who started out in the skilled trades sector, I’ve seen firsthand the valuable lessons that different industries can learn from one another. Recently, I came across an insightful interview with Troy Anderson, CFO of Universal Technical Institute, where he discusses how the accounting industry can address talent shortages by adopting strategies from the skilled trades. This blog post explores Anderson’s key points and provides actionable takeaways for financial services firms.
Understanding the Talent Shortage: Troy Anderson emphasizes that both the skilled trades and accounting sectors face significant talent shortages. The demand for skilled labor in trades like mechanics, HVAC, and welding parallels the increasing need for accountants and financial advisors. Anderson highlights that the traditional pathways to these careers are evolving, and there’s a growing recognition of alternative education models that can address these gaps.
Rethinking Educational Requirements: One of the most debated topics in accounting is the 150-hour requirement for CPA certification. Anderson draws a parallel to the healthcare sector, where discussions about lowering entry standards to address talent shortages have met resistance due to quality concerns. He suggests that while lowering standards can be a solution, it must be done thoughtfully to maintain the integrity of the profession. Financial services firms can learn from this by advocating for structured transition periods and alternative certification pathways that uphold high standards while making the profession more accessible.
Promoting Career Flexibility and Benefits: Anderson stresses the importance of demonstrating the benefits of careers in both trades and accounting. Offering flexibility and creating environments where employees feel valued are crucial. Financial services firms can adopt this approach by promoting work-life balance, flexible working hours, and remote work options. Highlighting the long-term career growth and stability that financial advisory roles offer can attract more talent to the industry.
Leveraging Employer Partnerships: A significant strength of Universal Technical Institute is its extensive network of employer partnerships, which provide students with direct pathways to employment. Financial services firms can replicate this by forging strong relationships with universities, offering internships, and creating mentorship programs. These initiatives not only help in recruiting fresh talent but also ensure that new hires are well-prepared for the demands of the job.
Emphasizing Practical Experience: Just as the skilled trades emphasize hands-on training, financial services firms should prioritize practical experience. Encouraging internships, apprenticeships, and real-world projects as part of the training process can make the transition from education to professional work smoother. This approach helps build a workforce that is both knowledgeable and experienced, reducing the learning curve for new employees.
Adapting to Changing Perceptions of Education: The perception of traditional higher education is shifting, with increasing recognition of the value of alternative education and training programs. Anderson notes the rising awareness of student loan debt and the demand for more cost-effective education solutions. Financial services firms can support this shift by recognizing and valuing diverse educational backgrounds, including those with certifications and practical experience over traditional degrees.
Maintaining Quality While Addressing Talent Gaps: While addressing talent shortages, it’s essential to maintain the quality of service and expertise. Anderson’s experience in healthcare education underscores the importance of balancing quality with accessibility. Financial services firms should ensure that any changes in educational or certification requirements are matched with rigorous training and development programs to maintain high standards.
In Conclusion, Troy Anderson’s insights highlight several key strategies that the accounting and financial services industries can adopt from the skilled trades workforce. By rethinking educational requirements, promoting career flexibility, leveraging employer partnerships, emphasizing practical experience, and adapting to changing educational perceptions, financial services firms can address talent shortages effectively. Building a thriving workforce in the financial services sector requires a proactive approach, continuous adaptation, and a commitment to maintaining high standards. These lessons from the skilled trades can guide financial services firms in creating a robust pipeline of skilled professionals ready to meet the industry’s demands.
